Broker MRHT adds new investor and eyes further growth

London-based private equity firm AnaCap Financial Partners (AnaCap) has sold a minority stake in fast-growing owner-managed German industrial broker MRH Trowe (MRHT) to US-based private equity firm TA Associates.

Since AnaCap took a stake in MRHT two and a half years ago, the broker has completed 21 bolt-on acquisitions and added double digit organic growth.

MRHT said that the arrival of TA Associates will not change the growth strategy. “The new growth partnership with TA Associates will further accelerate MRHT’s growth trajectory and cement its position as a leading insurance broker in the DACH region. The group is now on track to deliver more than €150m of revenue in 2023,” it said.

MRHT’s founding managers will remain the largest shareholder group after the deal and will be backed by both AnaCap and TA Associates moving forward. The transaction is subject to EU antitrust approval. The deal generates a 4.3x money multiple.

MRHT is now one of the ten largest German industrial insurance brokers, with more than 1,100 employees and €650m of premium volume.

It offers expertise in nearly all insurance lines for industrial and commercial clients, financial institutions as well as high-net-worth individuals.

The transaction follows the recent completion of a debt refinancing for MRHT, led by Macquarie Capital Private Credit and existing lending partner Bain Capital Credit.

MRHT said that this extended partnership will further “optimise” MRHT’s capital structure and provide the funding necessary to deliver on the next chapter of its growth.

Ralph Rockel, co-founder and chief executive officer at MRHT, commented: “Our partnership with AnaCap has already been one of significant support in the development of our business and brand. With the additional expertise of our new growth partner TA Associates and improved capital structure, we will be able to reach a new level of potential, both across DACH and internationally. This is an exciting time for both MRHT customers and employees.”

Tassilo Arnhold, co-managing partner at AnaCap, added: “To date, it has been an absolute privilege to work in partnership with the founders of MRHT and we are thrilled to continue this exciting journey together going forward. The investment in MRH Trowe is one of our most successful investments and we are now delighted to welcome an experienced investor like TA Associates to this successful partnership. Our core focus remains to back strong entrepreneurs in the financial services sector and the MRH Trowe founder management team with its vision to pursue an integrated buy-and-build model, holistic client servicing approach and strong value-based leadership culture continues to excite us tremendously.”

Chris Parkin, managing director and co-head of financial services at TA Associates, said he believes MRH Trowe is “uniquely positioned” to consolidate its large and highly fragmented market. “We have followed the company for many years and are truly impressed by the work that the founders and broader team have accomplished,” he added.